The Korea Herald


Mirae Asset Global Investments seeks to raise W300b for US real estate fund

By 박한나

Published : Sept. 19, 2016 - 10:39

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[THE INVESTOR]  Mirae Asset Global Investments, South Korea’s asset manager, is seeking to raise 300 billion won (US$266.95 million) for its latest real estate fund to invest in four office buildings in Texas, US, the company said on Sept. 19.

Mirae Asset MAPS US Real Estate Fund will be available at local branches of Mirae Asset Securities, Mirae Asset Daewoo Securities, and Mirae Asset Life Insurance from Sept. 19 to 28. 

This is the first time that the firm is offering a US real estate fund to retail investors.

According to the asset manager, the fund is closed-end and will not be redeemable before expiration, 7 years and 6 months from its launch date. Moreover, it will be listed on the Korea Exchange within 90 days of initial operation.

The move comes as investors’ appetite for real estate risks is increasing amid the low interest rate environment.

The fund will invest in recently established four office buildings in the Cityline complex near the Richardson area in Dallas.

Mirae Asset said the fund expects to maintain a stable income from the buildings’ tenant StateFarm, the leading insurance company in the US, which is under a 20-year lease.

Dividends will be distributed every 6 months starting June 2017, but the firm didn’t specify the new fund’s expected rate of return.

By Park Han-na (